Addison Lee sold to Singapore’s ComfortDelGro for £270m

Iconic London taxi group Addison Lee is to be sold to a Singapore-based multinational for £269.1m.

ComfortDelGro said on Wednesday it would buy the premium ride-hailing, courier and black cab provider, with its CityFleet Networks business taking over the 7,500 drivers and 5,000 vehicles in London-based Addison Lee’s network.

It follows a restructuring under Addison Lee chief executive Liam Griffin, which helped the group survive the Covid-19 pandemic before recovering and returning to growth.

Griffin, the son of company founder John, initially resigned in 2018 after falling out with new bosses brought in by investor Carlyle.

He then bought back the company in 2020 for £125m using his own money and cash from Cheyne Capital.

Addison Lee’s most recently published Companies House accounts show the company made a pre-tax loss of £602,000 in the 12 months to August 31, 2023, against a profit of around £2.8m for the year former.

Griffin, who will remain with Addison Lee along with “key” management colleagues, said: “ComfortDelGro has demonstrated deep knowledge of the business and a clear understanding of the needs of our customers and drivers.”

‘ComfortDelGro is a perfect complement for us. “They share our philosophy, vision and ambition for the Addison Lee brand and bring significant international industry experience to the business.”

The deal expands CityFleet Networks’ black cab and private hire fleets in other parts of the UK, including Liverpool, Wirral, Chester and Aberdeen.

The addition of Addison Lee will grow the group’s taxi and private hire network to more than 34,000 vehicles worldwide.

ComfortDelGro also offers pre-planned and on-demand ground transportation to businesses, as well as private and rideshare transfers to airports, bus and train stations, and ports, through its recently acquired business, CMAC.

The Group also owns and operates Metroline buses and Westbus coaches in London, Adventure Travel buses and coaches in Wales, as well as intercity coach services Megabus, Scottish Citylink and Irish Citylink.

Group chief executive Cheng Siak Kian said: “Beyond expanding our presence in the UK, this acquisition will allow us to use Addison Lee’s expertise to deepen and scale our premium peer-to-peer capability globally.” “It will also strengthen our overall point-to-point proposition, creating strong synergy with our existing businesses.”

President Mark Greaves added: “We will use Addison Lee’s strong brand, customer base and trusted network of premium drivers to continue creating great trips for our customers and the communities we serve, a commitment we hold true in all of our business”.

“With 90 percent of its existing fleet already made up of cleaner energy vehicles, this will help accelerate our fleet transition process.”